Bitcoin/USD loses $1,000 almost instantaneously while the third-largest bank in China places cats among the pigeons at the beginning of trading.
BTC lost $1,000 in minutes on June 21 while fresh news from China managed to redirect the bulls one more time.
China’s Third-largest Bank Warns on Cryptocurrencies
Reports from Cointelegraph Markets Pro and TradingView on Monday revealed that BTC/USD hit local lows below $32,500.
The source, which troubled a day of revival from another dip, seemed to once again come from China thru a key bank statement that confirmed it would not permit the use of its services for transactions related to Bitcoin or crypto.
China’s third largest bank, the Chinese Agricultural Bank, was implicated.
“The statement emphasized that once relevant behaviors are discovered, account transactions will be immediately suspended, customer relationships will be terminated, and relevant departments will be reported,” journalist Colin Wu reported on Twitter.
This resulted in volatility, while disconcerting, matches behaviour from previous disclosures by China. The country has become the source of concerns for Bitcoin bulls in recent weeks as miners face a clampdown and officials reaffirm the existing constraints on cryptocurrency in place since 2017.
Ah more China FUD.— Paolo Ardoino (@paoloardoino) June 21, 2021
Glad we are consistent.”
As earlier pointed out by Cointelegraph, nonetheless, many argue that price pressure is a typical exaggeration and that, eventually, bitcoin will benefit from a move away from Chinese dependence.
Strangely enough, information that the Agricultural Bank of China announcement has been deleted is now beginning to surface.
Ok guys. Seems like the bank deleted the notice only a few minutes after it released.” https://t.co/6YrXyVthOm pic.twitter.com/PCbVIQYUru— 8BTCnews (@btcinchina) June 21, 2021
“The Bitcoin network has just experienced the biggest attack in its history,” Charles Edwards, CEO of asset manager Capriole, said on Sunday.
“The worst case scenario for a China mining ban has now played out.”